Union is strength: Though renewed borrowing will boost demand, regulatory threats remain

The Credit Unions industry experienced tremendous growth since 2015 due to strong demand for credit. Strength in the economy, as reflected in greater disposable income and access to credit, have incentivized individuals and businesses to demand loans for automobiles and credit cards. Likewise, increasing home prices have led to an increase in demand for mortgage loans offered by industry operators. Furthermore, as interest rates rise, demand for credit union loans, which typically have lower interest rates than retail bank loans, is expected to increase. Over the next five years, changes in the regulatory environment will shape the direction of this industry. Greater demand for credit unions increases their systemic importance to the overall economy...purchase to read more.

Industry Statistics & Market Size
Revenue
$69bn
Annual Growth 13-18
5.1%
Forecast Growth 18-23
Profit
Employment
297,311
Businesses
19,435
Market Share of Companies

Industry Threats & Opportunities

  • Changes in the regulatory environment will shape the direction of this industry over the coming years
  • Smaller credit unions have had difficulty competing with larger credit unions and commercial banks
  • Despite higher competition from retail banks, credit union membership has grown steadily
  • Industry Report - Industry Locations Chapter

    IBISWorld estimates that in 2018, the largest concentration of establishments is in the Southeast region, accounting for 24.8% all locations nationwide. Part of the reason for this region's significance is that it is home to the largest number of states (12), including the large, densely populated states of Florida, North Carolina and Virginia, where demand for financial services is high. The state of Florida is particularly important to the Credit Unions industry, accounting for 4.9% of total establishments.The Great Lakes is the second-largest geographic region for credit union operators, holding an estimated 17.6% of establishments. Within this region, Michigan, Illinois and Ohio possess the clear majority of industry establishments, with Michigan accounting for 5.0% o...purchase to read more.

    Additional Insights for the Credit Unions Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Credit Unions Industry are

  • Superior financial management and debt management
  • Ability to raise revenue from additional sources
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Aggregate household debt and External competition for the Credit Unions industry in the Credit Unions industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Credit Unions Industry?

    This industry comprises financial institutions known as credit unions or cooperatives. Credit unions are member-owned and provide banking services, which primarily include deposit taking and lending, to these same members.

    Industry Products
  • New vehicle loans
  • Used vehicle loans
  • First-mortgage loans
  • Second-mortgage, Home-equity loans
  • Credit Cards
  • Other Unsecured loans
  • Member business loans
  • Industry Activities
  • Accepting members' share deposits
  • Offering members consumer loans
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Aggregate household debt
  • External competition for the Credit Unions industry
  • House price index
  • New car sales
  • Prime rate

  • Current Performance
  • Interest rates
  • Membership growth
  • Industry consolidation
  • Regulation
  • Chart: Revenue Growth

  • Industry Outlook
  • Increased membership
  • Rising rates
  • Table: Credit Unions Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Credit Unions Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Construction
  • Home Builders
  • New Car Dealers
  • Consumers

  • Key Selling Industries
  • Finance and Insurance
  • IT Consulting
  • Professional Employer Organizations

  • Products & Services
  • First-mortgage loans
  • Used vehicle loans
  • New vehicle loans
  • Second-mortgage, Home-equity loans
  • Member business loans
  • Credit Cards
  • Other Unsecured loans
  • Chart: Credit Unions Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential market
  • Multiple-group market
  • Single-group occupational market
  • Associational market
  • Chart: Major Market Segmentation for the Credit Unions Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Rent and utilities
  • Purchases
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Credit Unions

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Credit Unions Industry

  • Industry Globalization
    Navy Federal Credit Union,
  • Table: Navy Federal Credit Union - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Credit Unions Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Credit Unions Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Prime Rate (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Fixed Rate Loan
  • A type of loan in which the interest rate that is paid on the outstanding balance is fixed.
  • Interest Rate
  • A rate charged on funds borrowed (lended) that is repaid (paid out) over and above the principal amount borrowed (lended).
  • Mortgage
  • A loan financing the purchase of real estate with specified payment periods and a fixed or variable interest rate.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Credit Unions Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Credit Unions industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Credit Unions:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Credit Unions market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Credit Unions, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Want to speak to a representative? Call us.

    clear